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State Lotteries as a Multiproduct Monopoly
Author(s) -
Geronikolaou G.,
Papachristou G.
Publication year - 2016
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2726
Subject(s) - lottery , monopoly , economics , microeconomics , profit (economics) , complementarity (molecular biology) , mathematical economics , operator (biology) , econometrics , biochemistry , chemistry , genetics , repressor , gene , transcription factor , biology
Stemming from the concept of multiproduct monopoly, we adjust the usual profit maximizing rule of the effective price model, to account for substitutability or complementarity among lottery products as well as a richer structure of prizes in the expected profit function. The new pricing rule is used to assess pricing decisions of the Greek lottery operator, based on a recent sample of two popular pari‐mutuel lottery games' data. Copyright © 2015 John Wiley & Sons, Ltd.